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How much did the number of private share owners increase?

User Lamya
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1 Answer

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Final answer:

The minimum number of investors needed to vote to change the company's top management depends on the total number of shares outstanding and the number of shares owned by each investor. Investors 1 and 2 cannot be certain of always getting their way in how the company will be run as they do not have a majority of the shares.

Step-by-step explanation:

The question is asking about the minimum number of investors it would take to vote to change the company's top management and if investors 1 and 2 can be certain of always getting their way in how the company will be run. To determine the minimum number of investors needed to vote for a change in management, we need to consider the total number of shares outstanding and the number of shares owned by each investor. In this case, the Darkroom Windowshade Company has 100,000 shares outstanding and the investors own different amounts of shares. To change the top management, the majority of the shareholders need to vote in favor of the change. In this case, investors 1 and 2 have a combined total of 20,000 + 18,000 = 38,000 shares. To determine if they can always get their way, we need to compare their shares to the total shares outstanding. 38,000 shares out of 100,000 shares is less than 50%, so investors 1 and 2 cannot be certain of always getting their way in how the company will be run. They would need to gain the support of additional shareholders to have a majority vote.

User Praveen R
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